Cash Flow Working Capital Solutions In Canada : What’s Up With Business Financing Services

Correct Time To Assess Business Financing Services & Solutions?

OVERVIEW – Information on business financing services in Canada that can accelerate cash flow and working capital needs for the owner/manager. Why are these tools and solutions important and where are they available








Cash flow and working capital needs are often ' timeless' in business. But when exactly is the best time to assess business financing services and solutions. It's almost... always. Let's dig in.


Financing needs of course vary by industry and type of business, but if your business requires the means to both manage and accelerate cash flow help is often around the corner. It's just difficult sometimes to find that corner!

The greatest irony in business or at least one of those ironies is the whole concept of sales and profit vs. cash flow performance. Cash flow almost always lags. But can the owner/manager source the tools to solve the problem? Top experts in Canada in fact tell us that working capital solutions are in fact the 2nd most priority for owners/entrepreneurs. (Sales and Mktg. were first)

In some circumstances the amount of gross margin and profit relate directly to the type of financing you can either achieve or handle. A solid example of this might be RECEIVABLE FINANCING, i.e. managing the 2nd most liquid asset on your books next to cash. While A/R finance provides unlimited working capital your firm must have the gross margins to be able to absorb the additional costs that come with that financing service.

Although many businesses operate in industries that are seasonal it’s crucial for the owner /manager to secure either traditional or alternative financing. Businesses are forced to consider those ' alternative ' options when Canadian chartered bank financing is either ' unavailable’... or ' not enough'.

What many business owners and even their financial managers don't realize is that by simply managing current assets better, and effectively ' monetizing ' them allows the company to avoid taking on more debt or raising equity via some source.

What are those ' ASSET MONETIZATION' tools and business financing services? They include:

Bank lines of credit (low cost/flexible/more difficult to attain)

A/R Finance - cash flowing your receivables as soon as sales are generated to the extent you need cash

Inventory Finance - Particularly suited to retailers and mfrs and distributors

Tax Credits - Cash flowing Govt SR&ED Credits

ABL'S - (Non bank Asset based lines of credit that bundle all your current
Assets into one borrowing facility

Purchase Order/Supply Chain Finance - the ability to fund larger orders or contracts where financing otherwise might not be available


Businesses in the SME (small to medium enterprise) commercial area tend to ' struggle' more with business financing challenges. Naturally that slows down their desires to grow dramatically, take on new products and services, or buy a competitor.

The ability to understand your cash flow needs, whether that is monthly, quarterly or annually will almost always benefit ownership/management. Current studies by experts suggest that over 60% of businesses prepare some form of cash flow forecast need.

So kudos to that man or woman that coined ' CASH IS KING' phrase.

If you want to become more ' literate ' to business financing services that can alter your financial success seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
Find out ' what’s up ' with working capital finance solutions that can help change the future success of your company in a positive manner.




Stan Prokop - 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 90 Million $ of financing for Canadian corporations . Info /Contact :


7 Park Avenue Financial = CANADIAN WORKING CAPITAL AND CASH FLOW FINANCING SOLUTIONS






Have A Question /Comment On Our Blog Or Canadian Business Financing Alternatives ?
CONTACT:


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 '

Stan Prokop

Business Financing Services In Canada . Fixing Financial Emergencies Via Specialized Funding

Putting The ‘ Ding’ In Fun When It Comes To A Financing Emergency . It’s Funding !



OVERVIEW – Information on business financing services and financial strategies for the funding needs of your firm when emergencies arise.



Business financing services in Canada . That's where the Canadian business owner and financial manager looks when they need to quickly put the ' ding ' back in the fun; which equates to FUNDING of course!

We meet many clients who fortunately are doing a pretty good job of planning ahead for their financing needs. What they don't forsee is the unanticipated event that causes an immediate negative reaction in their cash flow and working capital funding needs. Just the other day we met with a client who had lost their major client. The problem? That represented 80% of all of their business. The adverse reaction? Well, you can pretty well feel the pain, but one immediate thing that happened was that their bank called their operating line of credit.

Is there some ways to take stock of how you can plan for adverse business events that happen pretty fast? We think there is, so let's dig in!

A lot of the points we'll make revolve around three areas, growing your business, generating profits, and just plain surviving! It's the goal of the owners and financial managers to keep cash flowing through all those periods, and each of them has their challenges.

It seems easy to prepare a cash flow forecast and get a strong sense of your inflows and outflows over time based on your own experience. But what will you do when the unexpected occurs: That might include:

Competitor issue re pricing/products
Government legislation
Technology change

Etc!

That's when things get exciting, in the worst way!

So how can the business owner plan for funding when an emergency situation occurs? To us it comes down to three elements:

1. Having a strong sense of the time it takes to search for funds - It just might be recommended that you always have an expert in Canadian business financing to talk to - even in the good times

Knowing what options are available - These might include a temporary bridge loan on unencumbered assets, a receivable finance strategy, Purchase order financing, an unsecured cash flow loan, and finally a monetization of any tax credits which can be financed . (Yes you can finance a SR&ED claim), and the sale leaseback of owned assets. Oh, and by the way, do you recall that client that had their chartered bank operating line of credit called - they are fully eligible for a non bank asset based line of credit?

3. Knowing that you do have a strategy to mobilize resources you are not using today. At this point you are no longer ' keeping score' in business; you're taking stock of all your financial resources in business assets, financing relationships, etc

Financial emergencies can happen to your company at any time. At that point you need to ensure you know what your resources are, what assets can be liquidated, and knowing you have alternative financial vehicles to cope with planned outflow of cash.

Seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with a financing emergency, or help you to avoid one!





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 – CANADIAN BUSINESS FINANCING SERVICES


7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Phone = 905 829 2653
Fax = 905 829 2653

Email = sprokop@7parkavenuefinancial.com











Stan Prokop