Turn Around ! Turnaround Business Finance Solutions : How To Fix Your Company
OVERVIEW – Information on solutions for a business financing turnaround. Restructuring finance solutions to bring your company back from the brink
The business financing turnaround , commonly called ' restructuring finance ' becomes a necessity when companies find themselves on the brink of failure. The ability to turn your company around focuses on several key issues, not the least of which is ' new ' money or refinancing. The goal? Turn a business into a ' performer'. Let's dig in.
While in many cases a firm could be viewed as ' stagnant ‘it’s unfortunately a bit more dramatic than that, and whether it’s a people solution, or a monetary one the ' fix' is needed, but the solution unclear. In more dramatic circumstances a firm can be merged or acquired into a new entity.
While financial fixes and business financing solutions are almost always required it's important to note that issues such as mgmt, industry dynamics, and competition are other key factors in longer term success
What types of financing make a turnaround more plausible? Several key solutions can typically effect a positive turnaround. They include:
Revisiting operating credit line needs via a bank or Asset based lender
A/R Financing / Inventory Finance
Unsecured cash flow loans
Equipment finance/ sale leasebacks
Term loans secured by assets or cash flow
In many cases a combination of different financial solutions will bring a total solution.
More than ever the 2008-2009 financial crisis re-emphasized the fact that traditional financing can almost always not meet the needs of a turnaround. Bottom line - traditional bank type financing is not mandated to fund financial distress - simple as that. In fact even high hyper growth is rarely financeable by banks, whether financial losses or balance sheet issues are evident or not.
Many companies are already close to the brink and find themselves in the category of ' special loans' in the workout departments of banks and other lenders. If there is one finance solution that's more common a fix than others in restructuring finance it's the ABL (asset based lending) solution. That can come in the form of fixed asset financing, or more often than not a total facility that refinances your receivables, inventory, fixed assets up to and including any applicable real estate.
Asset finance can often quickly fix situations where access to operating credit is either limited or nonexistent in the face of continued ability to generate sales.
Asset lending in the wake of a turnaround situation will always be more expensive than traditional finance.
If you're looking for a financial ' fix' seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with your restructuring finance needs.
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 10 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
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8
Direct Line = 416 319 5769
Office = 905 829 2653
Email = sprokop@7parkavenuefinancial.com
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
