Need Business Turnaround Financing For Your Company . Canadian Solutions For Distressed Corporate Situations

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Information on business turnaround financing in Canada . Recognizing corporate distress challenges and implementing proper solutions



Need To Refinance Your Company ?

Business turnaround financing for Canadian firms is clearly one of the most challenging forms of corporate finance for those firms experiencing distress from either internal or external factors, more often than not a combination of both .

You can call it crisis management, turnaround management... whatever, bottom line, your company might need it. How then does a firm recognize that need, and what tools and financial solutions are available in Canada to implement a financial reorganization that makes sense.

Without a doubt it's about understanding both the causes and implications of company financial problems, and then implementing a solution.

When Canadian business owners and financial managers of companies in need of financing changes face their ' to do ' list a number of key focuses must be forged. They include restructuring your current debt, potentially downsizing your business, and addressing various legal issues with your current lenders, which might be both operating lenders and term lenders such as lessors, senior bank facilities, etc.

A common sense way of looking at things is to address some very basic questions, in effect:

What is going wrong and how must management take responsibility?

Do we have resources (i.e. assets) and financial assistance and expertise to begin and complete the turnaround?

Naturally depending on the size of your firm the challenge has different levels of complexity. Distressed situations can be addressed in either a ' strategic ' manner, or via an operating turnaround. Our comments are more focused on the operating turnaround... it’s the basics such as increasing sales, lowering costs, and refinancing assets.

In many cases new creditors must replace your current creditors. Again we emphasize that your current firm might be a start up, or one that has experienced tremendous growth and then stalled, , or in some cases your firm has been around a long time and financial issues simply have come to ahead and need to be addressed. All these firms require external turnaround management assistance, quite frankly, someone who has been here before.

At the end of the day it's about looking at your refinancing options which might include secured debt, bank debt, and other debt with commercial finance companies.

What then are potential solutions for corporate distressed situations? In Canada those solutions are debtor in possession financing; asset based lending, monetizing current assets via working capital facilities that include A/R and inventory and equipment components. Other less widely used options include securitization of contracts, tax credit financing, and supply chain financing.

Business turnaround financing is one of the most challenging aspects of Canadian business financing. Speak to a trusted, credible and experienced Canadian busines financing advisor for solutions that make sense for your firm.







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

Isn't Working Capital Bad For Your (Business) Health?

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Understanding and measuring business capital Needs. Information on business capital and why working capital might not be what you think it is! Cash flow solutions explained. Cash flow measurement tools.

We can hear our clients now! How possibly could working capital (isn't that cash flow?) be bad for my firms financial health. Let's talk about that.

The technical financial folks define this as a very basic calculation that even the non financial business owner can do - simply deduct your current liabilities from your current assets (from your balance sheet statement) and, voila! Congratulations, you have working capital. Hopefully that number is a positive number, because when it's negative you're technically insolvent and that's a subject and solution for another day!

Anyway, our number is positive - that's good, right. Not necessarily, and that's the premise of our info we share here, because if you have positive working capital your funds are tied up in receivables, inventories and pre paid items.

It is therefore very important to understand what makes up working capital, how you can monetize or cash flow it, and most importantly, but often totally overlooked, how you can measure business capital.

The essence of measuring your working capital revolves around turnover, days sales outstanding, inventory turns, and payables days outstanding.

The good news is that you can very easily calculate and track these measurements, and we can virtually guarantee they will better assist you to understand why your investment in working capital is very much a teeter totter of good news/bad news.

Do you like to travel? Money does also, and considers how long it takes for a dollar to travel through your company. From the day you place an order, purchase product, pay for product, bill a receivable, and yes, collect that receivable that total cycle can be easily 200 days, if note more. That's a lot of travel, so you hopefully can see our premise here that your investment in your working capital accounts is not necessarily a great thing.

Your business is composed primarily of inventory, receivables, and payables, (also fixed assets). We therefore strongly suggest to clients that they understand the turnover and overall return they are getting from these key asset accounts.

You would understand your situation somewhat better if it were not for those pesky issues that you can't control - business owners and financial managers recognize them well and run into them every day. They are sales growth and decline, your fixed costs that you have to pay and manage no matter what, and any financial distress you may be experiencing from past external factors - i.e. a bad year, etc,

The holy grail of business capital and working capital financing is when you have strong controls on internal asset turnover and at the same time you have access to external working capital via bank lines, asset based lending facility, loans, grants, etc.

We constantly remind clients that if they are turning over their working capital accounts more efficiently all the time its in effect a measure of the true success of your company - think of it, you're buying things, paying supplies on time, and customers are paying you on time and ordering more goods and services. A quick tool for measuring your progress in this area is simply to take your receivables days and inventory days, subtract your payables days outstanding, and if that number is improving, or going down you are winning the 'working capital is bad for your health' premise we have presented.

As a Canadian business owner you are both granting credit and requesting credit (customers and suppliers respectfully). Understanding business capital in this manner will allow you to finance better internally and borrow via banks, finance firms, asset based lenders, etc.

Speak to a trusted, credible and experienced business financing advisor about our ' health' problem and what your tools and solutions might be for better business success.

Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 13 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :

http://www.7parkavenuefinancial.com

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com


'

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














Article Source: http://EzineArticles.com/expert/Stan_Prokop/432698

Article Source: http://EzineArticles.com/5157895

Need Business Turnaround Financing For Your Company? Canadian Solutions For Distressed Corporate Situations

Need a Refinancing Turnaround?


Information on business turnaround financing in Canada . Recognizing corporate distressed challenges and implementing proper solutions.




Business turnaround financing for Canadian firms is clearly one of the most challenging forms of corporate finance for those firms experiencing distress from either internal or external factors, more often than not a combination of both .

You can call it crisis management, turnaround management... whatever, bottom line, your company might need it. How then does a firm recognize that need, and what tools and financial solutions are available in Canada to implement a financial reorganization that makes sense.

Without a doubt it's about understanding both the causes and implications of company financial problems, and then implementing a solution.

When Canadian business owners and financial managers of companies in need of financing changes face their ' to do ' list a number of key focuses must be forged. They include restructuring your current debt, potentially downsizing your business, and addressing various legal issues with your current lenders, which might be both operating lenders and term lenders such as lessors, senior bank facilities, etc.

A common sense way of looking at things is to address some very basic questions, in effect:

What is going wrong and how must management take responsibility?

Do we have resources (i.e. assets) and financial assistance and expertise to begin and complete the turnaround?

Naturally depending on the size of your firm the challenge has different levels of complexity. Distressed situations can be addressed in either a ' strategic ' manner, or via an operating turnaround. Our comments are more focused on the operating turnaround... it’s the basics such as increasing sales, lowering costs, and refinancing assets.

In many cases new creditors must replace your current creditors. Again we emphasize that your current firm might be a start up, or one that has experienced tremendous growth and then stalled, , or in some cases your firm has been around a long time and financial issues simply have come to ahead and need to be addressed. All these firms require external turnaround management assistance, quite frankly, someone who has been here before.

At the end of the day it's about looking at your refinancing options which might include secured debt, bank debt, and other debt with commercial finance companies.

What then are potential solutions for corporate distressed situations? In Canada those solutions are debtor in possession financing; asset based lending, monetizing current assets via working capital facilities that include A/R and inventory and equipment components. Other less widely used options include securitization of contracts, tax credit financing, and supply chain financing.

Business turnaround financing is one of the most challenging aspects of Canadian business financing. Speak to a trusted, credible and experienced Canadian business financing advisor for solutions that make sense for your firm.




Stan Prokop - founder of 7 Park Avenue Financial –


http://www.7parkavenuefinancial.com


Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 7 years - has completed in excess of 80 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing.
Info re: Canadian business financing & contact details :


http://www.7parkavenuefinancial.com/business_turnaround_financing_distressed_corporate.html