Working Capital Financing Cost – Not What You Thought
Information on the cost of cash flow financing in Canada and what business liquidity solutions are available as Canadian business financing alternatives .
So, are you ready? What in fact is he lowest cost (we kind of hate to use the word ' cheapest ‘) when it comes to working capital needs.
The answer? The best source of financing is actually ‘Reducing the need to finance operating needs'!
Changes that you can make in your business today can actually significantly reduce the need for sourcing traditional and alternative methods of finance.
Is your firm in fact limping along in today’s somewhat turbulent times - there doesnt seem to be a day when bad news externally seems to affect our businesses. There has probably never been more of a focus on cash and the ability to get capital for and into your business. Naturally one option is to stop spending or growing, but that’s the least desired solution by the average Canadian business owner and financial manager.
What's more difficult for you? In many cases it's simply managing it, and that gets more complex every day. When you think of it, if you had the ability to borrow or finance less and you were able to manage your current assets more effectively you have simply made yourself more competitive out there in your industry.
So the essence of our theme today is simply managing current assets - cash, receivables, inventory, prepaid more effectively.
Talking to our clients makes the situation even clearer. Why ? Because they profitability with liquidity when it comes to assets and asset management. You must be able to convert current assets into cash.
So how do you accelerate those cash flows? You do that by monetizing current assets when you need to, and focusing on faster collections. Monetizing those inventories and receivables can be done via traditional bank lines of credit, or the alternative: A/R and inventory credit lines from non-banks in Canada.
The best way to think of this is to focus on the fact that as your current asset accounts grow cash generally goes down. Increasing your payables is a nice offset to that, but it’s a tender balancing act when it comes to suppliers, employees and government remittances being paid on time!
Since your profits are embedded in your accounts receivable collecting them more quickly simply enhances your self cash flow financing.
Business liquidity solutions in Canada come in many forms. They include bank operating lines, asset based credit facilities, and working capital term loans. More costly solutions , but equally or even more effective sometimes are receivable financing strategies, inventory and supply chain finance, or even monetizing longer term receivables such as a SR&ED credit that may be due your firm .
If you want to explore the best cash flow financing and liquidity solutions speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with advice on internal and external strategies to enhance cash.
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/cash_flow_financing_business_liquidity_solutions.html
The secret of cash flow financing and business liquidity solutoins . What if you had both the knowledge and access to low cost Canadian business financing solutions in Canada .
