What Type Of Receivable Financing & Working Capital Solution Works Best For Your Firm?

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Why Take Chances With The Wrong Type Of Cash Flow Financing ?

Cash flow enabling is of course the top priority for every business owner and his or her financial manager. More often than not firms that search for asset based loans such as factoring or invoice financing are looking for a short or intermediate solution - the hard reality being that traditional financing from Canadian banks may not be available.

In some cases though asset based financing solutions can work in the long term also - but newer businesses with less of a track record, or high growth / fast growth companies need access to working capital..now . In some cases investments might be being made in other aspects of the business, perhaps r &d, or acquiring capital assets . ( Note - SR&ED Financing and Equipment Leasing also can alleviate spend in these two areas )

But inevitably it will come back to short term daily financing needs requiring a working capital solution . Companies with proven cash flows and historical financial success can of course access term loans in the working capital / mezzanine finance area.

When you are examining asset based financing, and a/r factoring specifically . These solutions allow business owners to raise cash quickly to capitalize on short term opportunities, for example new clients, large contracts, foreign sales , etc. It's no secret that traditional lending sources such as Canadian banks take a significant amount of time to complete .

Asset based financing such as factoring always costs more than the low bank interest rates - but the good news is rates in the asset finance area are the lowest they have ever been, and all indications point to more of the same! Also in the experience of our firm, 7 Park Avenue Financial the competition to secure your financing business is the strongest it has ever been.

Rates in the asset financing area are dependent on a couple of obvious factors, ie transaction size , quality of assets such as receivables or inventory, and other collateral in the firm such as equipment, etc. In some cases an appraisal, altho it might come with a modest cost can enhance your firms overall ability to get financed.

Having up to date an quality financials also is also key to successful and abundant asset financing . Your firms ability to bill, collect might seem simple and basic, but proof of adequate accounting and controls is key to loan approval .

Bottom line ? Your firm needs cash flow to run and grow the business. 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 business loan and cash flow needs.




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

Carrying On Without Cash Flow Is Not An Option ! Analysis and Solutions For Canadian Business

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INFORMATION ON BUSINESS CASH FLOW FINANCING SOLUTIONS

Carry on?
business cash flow ? That's not an option for Canadian business owners and financial managers. That's why the analysis of their cash and working capital needs, in the context of solutions available is so critical in today’s business environment.

So are we all in agreement? We mean of course that no company has the ability to on a long term basis operate successfully without cash. That shortage is often the reasons why many companies fail.

However, the balance sheet and the income statement, as we always preach, dont necessarily tell you the full story of your company's goings on! A cash flow statement, that’s the third part of every financial statement package will, however, truth be told you can perform a fair bit of solid analysis way before your accountant or your accounting system delivers that document to you.

So why do you want to be so attuned to that cash flow anyway. Simply because whether it’s the short, intermediate or long term it’s a true measure of your solvency. And that solvency is what keeps your creditors and lenders and suppliers either happy or dissatisfied with your payment ability.

In more sophisticated firms a real measure of cash flow is often ' free cash flow '. Simply speaking it’s the true cash flow calc which then subtracts your capital expenditures to come up with that ' free cash flow '. Investors in public companies look at that one a lot, and quite frankly since the small to medium sized business in Canada doesn’t pay dividends or have to report earnings and cash flow we dont really consider that one quite relevant in the context of today’s discussion .

So what is important then? Several other great tools area available. Just one of those is the cash return on sales analysis tool. Take your cash flow from operations and divide that by your net sales over that same time period. Let's say the number works out to 10%. What does that mean? Simply that 10% of the sales you generate provide cash to the company. At the end of the day the number is relative to your company because it tells you how efficient you are in turning sales into cash.

Another great tool to check out is current cash debt coverage, which we'll leave for another day’s discussion.

At the end of the day there are ultimately 5 reasons why companies fair - they have too much debt, they are caught in a vicious cash flow cycle, they have current assets that aren’t turning, or fixed assets and too little capital come into play.

To solve these challenges Canadian firms have a variety of solutions - they include bank lines, asset based lines of credit, receivable and inventory financing facilities, tax credit monetization, and securitization. Oh and dont forget the proper use of equipment finance.

Speak to a trusted, credible and experienced Canadian Business Financing advisor on business cash flow analysis and solutions available to your firm today.





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

Who’s The Boss? Are Cash Flow Financing Challenges Managing You? Business Working Capital Management

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Information on Solving Cash Flow Financing Challenges in Canadian Business

Valid question, right? When it comes to your business
working capital and cash flow financing who's running the show, you, or are those two culprits seemingly running your company?

We're remind of one of Yogi Berra's (many) great lines - ' when you come to a fork in the road, take it ‘! That's probably where you are now in many cases. Determining who will win the ongoing cash flow battle for supremacy.

The reality is that you can probably be forgiven for feeling ' Who's the boss ' as statistics show that 82% of business owner don't feel in control or comfortable about their cash flows. So how in fact do you regain that feeling of control that every business owner treasures.

A good start is to know what you're talking about. We've repeatedly said that cash flow is such an over used and misunderstood concept or term. We can get really technical (net income plus deprecation plus or minus changes in working capital components) but unless we're at an accounting trade show/convention that's not really what we're looking for here!

To make things more complex we can make a case that your ' cash flow ' has to do with historical, present, and future needs, making it even tougher to get a handle on.

There are some great tools and also solutions to manage your cash flow financing needs. And again, we're talking about real cash, not income statement profits. That frankly though is a good place to make a very important comment - if your cash flow statement ( it's component # 3 of every financial statement ) differs significantly from your income statement over time you probably will never really regain cash flow control/supremacy.

So lets examine some solid ways to make sure you feel good about that ' WHO'S THE BOSS' question we posed earlier.

First of all, keep your financials up to date and understand them. A small handful of key ratios or relationships you can easily, and we mean very easily monitor over time will allow you to feel ' in control ‘. Simple things like receivable days turnover, inventory turns, sales to fixed assets, etc.

It sure doesn’t hurt to do some methodical cash flow planning. Also, take a look at your overall capital structure from a viewpoint of debt and equity. This allows you to properly take advantage of market growth opportunities, even an acquisition perhaps.

We know we sound like a broken record sometimes, but understand your operating cycle; it’s the amount of time it takes for a dollar to flow thru your company. Match a financing solution to that selling cycle.

Hottest tip today on cash flow generation? It's dont pay anyone! But seriously, managing your payables and disbursements is critical, but we're the first to recognize the importance of supplier relationships. If you have a sales force you might consider paying them commissions when sales are paid, not made. Talk about incenting the collection focus!

If your assets aren’t turning over quickly focus on that. You can also monetize your current assets via

bank lines, asset based lines of credit, working capital lines, receivable financing, inventory financing, and supply chain finance .

Who's the Boss when it comes to cash flow? Hopefully you. Speak to a trusted, credible and experienced Canadian business financing advisor on cash flow financing and business working capital analytics and solutions.






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

How To Finance A Company In Canada : Mistakes You Don’t Want To Make In Cash Flow Financing

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Information on how to finance a company in Canada

How To Finance A Company...that's the challenge for owners of new and existing businesses in Canada when it comes to equity, debt, and cash flow financing.

Let's examine some basic aspects surrounding that issue with a focus on how Canadian business owners and financial managers can both identify and then source capital. Our focus will be primarily outside of the equity arena as private and public entity is... well... a whole different kettle of fish.

Timing is of course... everything .. and it sure helps when you're financing a firm in an economy that is a bit healthier. Financing, both from a debt or cash flow point of view is of course the lifeblood of any firm. Great companies, both small and large go out of business due of course to inability to get the proper mix of financing in place.

As most business people know it’s not only a challenge to generate the interest of a financial partner - then it becomes the challenge of an approval securing those funds! And as your firm grows you will need additional cash flow financing - you don't want to be in a position of growing so much that you business fails - that has happened to many in Canada.

In Canada banks and other commercial financing firms provide the debt and cash flow financing capital you need Let's explore and recap some of those debt and cash flow financing options available

When most business owners think in terms of external financing they consider Canadian chartered banks as the key option. That is no doubt certainly the most publicly available finance - and when you have the corporate and personal assets and collateral the rates, terms and structure of the bank agreement is without a doubt appealing.

But in many cases the Canadian banking system can't support the thousands of firms who have additional or specialized needs. In the case of securing bank credit you need positive profits, assets and collateral, a track record and probably forms of what the banks call ' secondary repayment - Our clients know it as the ever concerning Personal Guarantee!

So, when you are looking s to how to finance a company what are some of those other options? They include asset based lenders; in the true sense of an ' ABL ' solution these firms provide non-bank lines of credit secured by your A/R, inventory, and fixed assets on the balance sheet. And a lot of the emphasis that banks place on approval do not come into play with an ABL lender.

Equipment financing, aka leasing your key assets is also a very effective method of financing your firm. It also relieves the larger cash outlays your busines needs when it acquires assets.

Start up and small businesses have access to the Government SBL loan program, which has great rates, terms and structures when it comes to acquire assets and even financing leaseholds and real estate. And the majority of the loan is guaranteed to the bank by the Federal government.

Cash flow financing, or the ' monetizing of assets ' can be accomplished by utilizing receivable financing, inventory finance, and even selling your tax credits such as those under the SR&ED program . Why wait a half year to get your cheque from your non repayable tax credit?!

One of the best methods of cash flow financing comes your a partner you know only too well - yourself and your firm. By managing your assets such as inventory and A/R you can generate internal cash flow through your business operations.

Speak to a trusted, credible and experienced Canadian business financing advisor on those equity and debt options when it comes to how to finance a company in Canada.





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

Conquering Canadian Business Cash Flow Challenges

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The Cash Flow Financing Conundrum.. Solved!

Information on business working capital and cash flow solutions for Canadian business . Solutions are available for operational credit and financing in the current economic environment ?

Interested in finding out why business working capital and cash flow challenges for operational needs are a challenge for small and medium sized businesses in Canada? We are pretty sure you are even more interested in some solutions to that challenge!

One report has noted,  among other things ,that  small and medium sized firms are still having huge challenges in raising the working capital they need - even though in many sectors business is back to ' booming ' again . As a Canadian business owner or financial manager you would like some solutions to get that cash flow booming again, we're sure.

For firms that are mature in age, have good assets and strong operational cash flow those challenges are limited. However, if your company is on the opposite side of that spectrum you're living in a  ' business hell ' if we can use that term - at least if it isn’t hell its purgatory!

How can you identify the best, what we can call ' straight forward ' options for working capital and business cash flow solutions? We think the answer is simply understanding and getting a handle around the traditional ( or conventional ) Canadian business financing techniques , but, even more importantly, understanding newer solutions that are becoming more mainstream in acceptance everyday .  Without the resources of an experienced business financing advisor you might not even have heard of some of these solutions, let alone having considered implementing them.

We're the first to agree that Canadian banks are lending again, rates are close to all time lows, and credit reins and collateral and covenants have slowly loosened. But again, small and medium sized businesses aren’t feeling it.  Another recent March2011 survey, albeit U.S. based said most business owners still experience temporary or severe cash flow issues, forcing them to delay payments to suppliers, and delay spending on new assets for business growth.

In order to implement better, or newer working capital and cash flow business operational strategies your firm must understand how you are managing your finances now, what assets are available to monetize, and, often forgotten, you must have a handle of what future cash flow needs will be.

As we noted, traditional bank financing is alive and well in Canada. For those that can't leverage the amount of operational credit that they require a better understanding of ' new ' solutions is required. And we know you've been waiting for what those new solutions are!

More recent and increasing  widely accepted methods of generating working capital include the following -  

asset based lending , working capital facilities that margin a/r and inventory as a combo ,  confidential invoice discounting , securitization, cash flow sub debt loans, purchase order and contract financing,  as well as bridge loans  on already owned equipment . Our favorite - asset based lending... but more about that one on another day.

Any of the above solutions will allow you get your cash flow and working capital under control. Speak to a trusted, credible an experienced Canadian business financing advisor. Reclaim your business cash and operational financing!






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

Top Strategic Working Capital Funding and Facility Solutions

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Keep your company alive and functioning with Cash Flow Solutions

Information regarding working capital funding for Canadian business. A proper cash flow financing facility / business credit line is critical to long term business success. Cash flow solutions are available via traditional and alternative financing sources

Every Canadian business owner and financial manger wants to know that their firm has financial health in the short term. Your company's ability to access working capital funding means only one simply thing - you have the ability to pay off your short term liabilities such as accounts payable, taxes, source deductions, etc .


So do you in fact need a better type or working capital facility today, and, if so, what are you options. We can't cure the patient unless we can confirm he is sick... so how in fact do you determine if that working capital need exists. It could not be simpler. Go to your balance sheet, add up cash, receivables and inventory, and if they in total don’t cover your accounts payable, guess what... the patient has a problem .


Two points worth mentioning, we fully realize most successful business managers and owners know intuitively that they have a challenge in the area of cash flow. It's simply recognizing that on a day to day basis more and more time is devoted to working capital management - i.e. collections, invoicing, juggling payables, etc.


There are very specific cash flow solutions for your working capital funding requirements. But believe it or not many of them can actually be fixed internally. You ability to negotiate better terms with your suppliers is a critical cash flow factor. More importantly many business owners don’t focus on turnover and quality of your current assets such as receivables and inventory.


By effectively measuring and monitoring your turnover in receivables and inventory can significantly improve cash flow. Technically we're talking about reducing day’s sales outstanding and calculating inventory turnover. Your goal is to reduce the amount of time it takes for a dollar to flow through your company.


So we have identified the problem, and the measurement issues around that problem, let’s focus on solutions.


In a perfect world, and we know its not, your Canadian chartered bank would financing all your receivables and inventory on an ongoing basis, and , when you need it offer up a bulge type facility to take you through a working capital rough patch . That type of working capital facility is generally referred to as a business operating line of credit.


As we said, it’s not a perfect world apparently! ... And thousands of firms, perhaps yours, don’t have access to this type of facility. So the Canadian marketplace offers up a number of solutions, for medium sized and larger firms the alternative is an asset based line of credit that comes without the restrictions of a bank facility ( ratios, covenants, outside collateral, etc) but in fact provide you with more working capital than a bank could .

For smaller firms a working capital facility term loan is available via the government related bank in Canada. For smaller and medium sized firm’s receivable financing facilities, know as factoring, can turn your receivables into a constant ATM machine, albeit at a higher cost.


So whats our bottom line. Simply the right working capital facility will put life back into the patient, your company! Knowing what facility works best, what your options are, etc is really the only challenge, Speak to a trusted, credible and experienced Canadian business financing advisor to guide you through to the right cash flow solution.




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
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