Solving Turn Around Financing And Business Finance Problems in Canada

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Do You Know How And Where To Finance The Turnaround?


Information on turn around financing in Canada . How business owners can address and solve serious finance challenges and problems with success

There are strategies that troubled companies can use to save themselves from dire straits and regain their former financial success. These same sort of strategies are valuable for business owners and financial executives to understand how their firms can avoid financial turbulence and failure.


We must first realize that business failure or bankruptcy never happens overnight. Normally there is a gradual trend of financial deterioration that is sometimes exacerbated by industry troubles. No doubt in the current 2009-2010 environment the auto industry is a poster child for a troubled industry, as an example.


Naturally firms that are on the very precipice of failure or bankruptcy do not have many options or time left. It has to fix itself, or sink. No business owners or entrepreneurs want to face bankruptcy, liquidation, and other creditor issues.
Do financially failing firms survive because of a revival in products or their services, or have they in fact executed on improved financial management. This is a challenging questions, because the very financial problems that beset a firm hinder it in getting new sales, acquiring inventory, and regaining supplier credibility.


Also, lets be realistic, banks and other finance companies do not throw themselves at failing firms with financial offers of loans, lines of credit, etc. In fact what usually happens is that the company is forced to pledge some or all assets at much higher rates, sometimes simply accentuating the financial problems that were already there.
So what are the financial strategies that a firm can undertake to avoid financial failure when it has been losing sales, not generating profits, and generally traveling down a potential death spiral?


There are three or four solid strategies that can save the firm. The first is ' assets '. The second is liabilities and debt, and the third we will simply call ' maneuverering '.


Strategy 1:
Assets have value. They can be sold, re financed,, or pledged to secure new financing. This type of strategy works best when it works for all parties, the company and the lender, or the company and another firm. However lets be clear that this is somewhat of a one shot strategy. It either must work or it doesn't. Asset maneuvers have 3 stages of success: assets can be used to get a new loan, assets can be sold, or they can, in somewhat of a worst case scenario, be liquidated.


Strategy 2:
On the other side of assets on the balance sheet is debt and equity. Debt can be structured properly to ensure the lender gets a reasonable reward, and the company is able to both repay and survive. There are too many types of debt to consider for the purposes of this article - suffice to say that creativity in debt is somewhat unlimited. A firm could issue debt, as an example, and repay only when the company is earning profits again.This would normally entail higher rates, but again, as we have stated, the transaction has to make sense both for customer and lender. A solid alternative solution is to simply re - structure existing debt at new rates and amortizations.


Alternatively to debt a company with promise can bring in new equity or ownership. This is somewhat more risk for all as dilution of ownership is usually significant when a company is failing and bring in new equity capital.


Strategy 3:A firm sometimes has to look to the outside for help. Since the owners and managers are often too close to the problem it is somewhat of a classic case of not seeing the forest for the trees. Outside consultants and industry experts can often bring a solution to the table. They have insights that management simply did not possess. These strategies include developing new sales and product strategies, bring in new management, or considering a strategic merger.


In summary, anyone who has worked through several business cycles over a number of years knows that companies can in fact be saved. Some go on to be the new super stars of their respective industry. The company must clearly uncover what the problem is, and then adapt strategies, financial or otherwise, to fix those problems


Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with ‘ the turnaround ‘!

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


Click here for 7 PARK AVENUE FINANCIAL


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

Recognize These Business Finance Problems and Financing Challenges?

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Examining Cash Flow And Finance Challenges in Canadian Business



Information on financing challenges faced by Canadian business owners and managers. Spotting and Solving business finance problems

Business finance problems. Got the ability to spot financing challenges when it comes to the immediate and longer term issues that face your firm in the Canadian business environment? We have always felt that some positive proactive techniques and information can go a long way to your health... and that’s better business health we're talking about by the way!

It's easy for an outsider to revert to the textbooks on this one, and larger corporations have access to all sorts of advisory advice. The business owners and managers of small and medium sized corporations in Canada have the tools; they just need to know how to use them. Technically speaking, (and we promise to try and not do a lot of that,) its just understanding your financial and operating leverage.

In reality by using basic and time tested tools you're in effect creating an early warning system around business finance problems and financing challenges you are facing now or down the road. And the goal is pretty clear, don't you think - it’s about ensuring you can fulfill your financing and contract obligations while at the same time growing and profiting.

A lot of finance problems revolve around your favorite entity, your customer. It's therefore prudent at all times to understand the financial health of your customer. This can be accomplished in a number of ways - if you don’t think major corporations ask for their clients financial statements... well you're simply wrong. The small and medium sized corporation can utilize various tools to monitor customer financial health; even monitoring payment habits over time is a great tool, allowing you to spot deterioration.

It goes without saying you have to be open to realizing what some of your current financing challenges are - Thats often tough for the business owner to admit because most entrepreneurs we meet are optimistic, sometimes excessively so, which is of course a double edged sword.

Can you balance sheet actually predict failure? A lot of history tells us it can... and there's some pretty basic stuff here. Things like knowing the real value of your assets, not the book values when it comes to negotiating with Tier 1 or Tier 2 lenders. While cash and receivables are the two most liquid parts of your balance sheet even those receivables might misrepresent a true value in your firm if they are uncollectible, or uncollectible in a timely fashion.

While it may seem unappealing to spent to much time analyzing your financial health just some very basic ratios ( we’ve always called them relationships ) in 4 areas - liquidity, leverage, activity, and profit will give you a great total view of your firms current or upcoming challenges .

In Canada your firm has access to traditional financing via Canada's chartered banks, but those financing challenges that seem ' unfixable' can be address by a broad number of business finance solutions from non bank lenders - they include asset based lines of credit , government business loans, monetization of receivables and inventory separately or combined, supply chain finance, and tax credit monetization.

Bottom line ... invest some time in some analysis and basic tracking tools, and consider speaking to a trusted, credible and experienced Canadian business financing advisor on solutions to business finance problems.

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

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

Business Finance Problems ? An Overdose Of Funding Solutions Might Be In Order

2 ½ Solutions For Successful Business Financing

OVERVIEW – .Information on solutions for business finance problems in Canada . Funding solutions will always come down to your assessment of traditional, alternative or internal methods of fixing financing challenges



Business finance problems in Canada? It's no secret to Canadian business owners and managers that the funding they need to solve those challenges all comes down to the overall borrowing quality of the firm. Banks and commercial lenders make it their business to in effect ' predict ' failure.

But what can the owner/manager do to ensure the right access to choices for loans and working capital and can the right type and amount of financing lead to the successful turnaround of your firms’ financing fortunes. Let's dig in!

A good way to look at things it to ensure that the type of financing you seek corrects the poor performance your company might be experiencing due specifically to lack of, or wrong financing. We speak to clients in terms of 2 1/2 solutions to funding challenges in Canada.

They can be broadly grouped into:

Traditional

Alternative

And the 1/2? That comes about by better knowledge and management of existing assets. That might include refinancing assets under a sale leaseback, or just common sense basics such as better receivable and inventory turnover.

Both owner/managers are also cautioned to ensure that the financials reflect the true value of their assets and liabilities. This allows you to look at your company in 4 different ways -

Immediate liquidity challenges

Debt structure

Operating Performance

Profitability

It could probably be debated, but ' liquidity ' is in fact the best predictor of immediate financial problems. Here it's all about the ' Current Assets' part of the balance sheet -how you manage those inventory turns, receivable days outstanding, etc.

Immediate solutions in this area include bank or non bank business lines of credit that are commensurate with your overall credit quality. Other solutions include Purchase order or contract financing, future revenue stream finance, and receivable sales programs typically achieved through a receivable discounting facility. All of these fall into one of two categories we have already mentioned, traditional, or alternative!

That's a nice segue into our next point , which is that those other 3 areas - debt, operational efficiency, and profits will in fact dictate whether you're better to explore traditional or non traditional Canadian business financing solutions .

When it comes to business finance the bank or commercial lenders you're working with will take a hard look at the financial performance history. However good commercial lenders tend to pride themselves on ' failure prediction '. That’s why it's important for the owner/manager/CFO/Controller etc has to ensure all the bases are covered in our 4 different ways we've offered above to assess your historical and current financial performance.

How do the right financing solutions then fix your business finance problems? Properly executed they will show there is a turnaround solution in place, and be able to fix financing challenges within a generally specific timeframe.

If you want to ensure you have the right fixes and solutions in place to support sales growth seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you in areas of traditional and alternative finance. They include:

Receivable financing
Inventory finance
Bank and Non Bank business lines of credit
Sale leasebacks
Tax Credit Monetization
Bridge Loans


P.S. Your take away? Focus on seeking expertise in the 2 1/2 ways of financing your funding needs - Traditional, Alternative, and... Internal!



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 10 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 :

7 Park Avenue Financial = Business Finance Problem Expertise













Stan Prokop

Business Finance Problems ? Here’s Some Canadian Capital Financing Solutions !

Uncovering Secrets in Business Finance Success


OVERVIEW – Information on techniques to recognize business financing problems and information on financing solutions for Canadian business.



If there is one benefit of meeting and speaking to numerous companies with business finance problems its that one quickly gets a sense of what financing solutions are needed... and when!

In fact a lot of what we could call early warning signs in business challenges emerge pretty clearly - even though those same signs are often ignored or misinterpreted by the Canadian business owner and financial manager. Let's look at some of these business warning signals and how you can nip them... in the bud as they say!

Experienced business owners know that access to capital tends to come and go... its those good times, bad times and boom and bust that makes the journey somewhat... exciting.

Most owners / managers are simply happy to ensure they have access to the right financial solutions for their company. Even more important is ensuring those solutions come with terms, rates and structure that suit those present situations.

Your ability to have access to up to date information at any time is critical to both managing your business and having access to solutions. So when we meet a client that can't produce regular monthly balance sheets and income statements that has always been a warning sign of bad things to come.

Mismanagement of current assets is the real killer in working capital and cash flow problems. If there is any good news in that it’s that there are some great finance vehicles to help you both manage those current assets and address the cash flow challenges that come with any business that's both surviving, and growing.

Let's take a look at some of those current asset warning signals. Key in that category is the double whammy of growth and slowdown in accounts receivable. Not knowing your day’s sales outstanding and the ongoing relationship of sales and receivables is a business killer. Financing receivables in Canada can come in a number of different ways - they include”

Receivable financing / factoring
Comprehensive asset based credit lines that margin A/R at 90%
Bank credit facilities

All of the above solutions come with different rates and structures - some will work for your firms overall credit quality, some might not. What these solutions do provide though is an immediate increase to your ' cash on hand ‘... and that’s a good thing.

Inventory deterioration, or even inventory build up are also key warning signals to a business finance problem. It's important to know your inventory turns, and, similar to receivables monitor those inventories so they aren't continually representing more and more a percentage of your total assets.

We've been talking ' current assets' but at the same time fixed asset concentrations can be a killer also. Here is where proper use of term debt and lease financing are critical.

In summary, knowing what financing you need, and when it critical to the fix for some of those early warning signals we've talked about.

Speak to a trusted, credible and experienced Canadian business financing advisor on ' realistic ' financing vehicles for your firms operations, challenges, and growth.

7 PARK AVENUE FINANCIAL
CANADIAN BUSINESS FINANCING EXPERTISE





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.webpage66.com/business_finance_problems_financing_solutions.html

Solving Turn Around Financing And Business Finance Problems in Canada

Do You Know How And Where To Finance The Turnaround?


Information on turn around financing in Canada . How business owners can address and solve serious finance challenges and problems with success



There are strategies that troubled companies can use to save themselves from dire straits and regain their former financial success. These same sort of strategies are valuable for business owners and financial executives to understand how their firms can avoid financial turbulence and failure.

We must first realize that business failure or bankruptcy never happens overnight. Normally there is a gradual trend of financial deterioration that is sometimes exacerbated by industry troubles. No doubt in the current 2009-2010 environment the auto industry is a poster child for a troubled industry, as an example.

Naturally firms that are on the very precipice of failure or bankruptcy do not have many options or time left. It has to fix itself, or sink. No business owners or entrepreneurs want to face bankruptcy, liquidation, and other creditor issues.

Do financially failing firms survive because of a revival in products or their services, or have they in fact executed on improved financial management?

This is a challenging question, because the very financial problems that beset a firm hinder it in getting new sales, acquiring inventory, and regaining supplier credibility.
Also, lets be realistic, banks and other finance companies do not throw themselves at failing firms with financial offers of loans, lines of credit, etc. In fact what usually happens is that the company is forced to pledge some or all assets at much higher rates, sometimes simply accentuating the financial problems that were already there.


So what are the financial strategies that a firm can undertake to avoid financial failure when it has been losing sales, not generating profits, and generally traveling down a potential death spiral?
There are three or four solid strategies that can save the firm. The first is ' assets '. The second is liabilities and debt, and the third we will simply call ' maneuvering'.


Strategy 1:


Assets have value. They can be sold, re financed,, or pledged to secure new financing. This type of strategy works best when it works for all parties, the company and the lender, or the company and another firm. However lets be clear that this is somewhat of a one shot strategy. It either must work or it doesn't. Asset maneuvers have 3 stages of success: assets can be used to get a new loan, assets can be sold, or they can, in somewhat of a worst case scenario, be liquidated.


Strategy 2:
On the other side of assets on the balance sheet is debt and equity. Debt can be structured properly to ensure the lender gets a reasonable reward, and the company is able to both repay and survive. There are too many types of debt to consider for the purposes of this article - suffice to say that creativity in debt is somewhat unlimited. A firm could issue debt, as an example, and repay only when the company is earning profits again.This would normally entail higher rates, but again, as we have stated, the transaction has to make sense both for customer and lender. A solid alternative solution is to simply re - structure existing debt at new rates and amortizations.


Alternatively to debt a company with promise can bring in new equity or ownership. This is somewhat more risk for all as dilution of ownership is usually significant when a company is failing and bring in new equity capital.

Strategy 3: A firm sometimes has to look to the outside for help. Since the owners and managers are often too close to the problem it is somewhat of a classic case of not seeing the forest for the trees. Outside consultants and industry experts can often bring a solution to the table. They have insights that management simply did not possess.

These strategies include developing new sales and product strategies, bring in new management, or considering a strategic merger.

In summary, anyone who has worked through several business cycles over a number of years knows that companies can in fact be saved. Some go on to be the new super stars of their respective industry. The company must clearly uncover what the problem is, and then adapt strategies, financial or otherwise, to fix those problems.


Speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with ‘ the turnaround ‘!






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/turn_around_financing_business_finance_problems.html

Recognize These Business Finance Problems and Financing Challenges?

Examining Cash Flow And Finance Challenges in Canadian Business


Information on financing challenges faced by Canadian business owners and managers. Spotting and Solving business finance problems




Business finance problems. Got the ability to spot financing challenges when it comes to the immediate and longer term issues that face your firm in the Canadian business environment? We have always felt that some positive proactive techniques and information can go a long way to your health... and that’s better business health we're talking about by the way!

It's easy for an outsider to revert to the textbooks on this one, and larger corporations have access to all sorts of advisory advice. The business owners and managers of small and medium sized corporations in Canada have the tools; they just need to know how to use them. Technically speaking, (and we promise to try and not do a lot of that,) its just understanding your financial and operating leverage.

In reality by using basic and time tested tools you're in effect creating an early warning system around business finance problems and financing challenges you are facing now or down the road. And the goal is pretty clear, don't you think - it’s about ensuring you can fulfill your financing and contract obligations while at the same time growing and profiting.

A lot of finance problems revolve around your favorite entity, your customer. It's therefore prudent at all times to understand the financial health of your customer. This can be accomplished in a number of ways - if you don’t think major corporations ask for their clients financial statements... well you're simply wrong. The small and medium sized corporation can utilize various tools to monitor customer financial health; even monitoring payment habits over time is a great tool, allowing you to spot deterioration.

It goes without saying you have to be open to realizing what some of your current financing challenges are - Thats often tough for the business owner to admit because most entrepreneurs we meet are optimistic, sometimes excessively so, which is of course a double edged sword.

Can you balance sheet actually predict failure? A lot of history tells us it can... and there's some pretty basic stuff here. Things like knowing the real value of your assets, not the book values when it comes to negotiating with Tier 1 or Tier 2 lenders. While cash and receivables are the two most liquid parts of your balance sheet even those receivables might misrepresent a true value in your firm if they are uncollectible, or uncollectible in a timely fashion.

While it may seem unappealing to spent to much time analyzing your financial health just some very basic ratios ( we’ve always called them relationships ) in 4 areas - liquidity, leverage, activity, and profit will give you a great total view of your firms current or upcoming challenges .

In Canada your firm has access to traditional financing via Canada's chartered banks, but those financing challenges that seem ' unfixable' can be address by a broad number of business finance solutions from non bank lenders - they include asset based lines of credit , government business loans, monetization of receivables and inventory separately or combined, supply chain finance, and tax credit monetization.

Bottom line ... invest some time in some analysis and basic tracking tools, and consider speaking to a trusted, credible and experienced Canadian business financing advisor on solutions to business finance problems.






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_finance_problems_financing_challenges.html